Bio-polylactic Acid (PLA) Market - Growth, Trends, COVID-19 Impact, and Forecast (2021 - 2026)

Market Overview

The market for bio-polylactic acid is expected to reach USD 1,638.76 million by 2026, registering a CAGR of around 14.96% during the forecast period (2021-2026). The major factor driving the growth of the market studied is favorable government policies toward bio-plastics. On the flip side, the high cost of PLA and the negative economic impacts of COVID-19 are expected to hinder the growth of the market studied.

The packaging industry dominated the global market share due to its usage in fruit and vegetable packaging in supermarkets and for bread bags and bakery boxes, bottles, envelopes and display carton windows, and shopping or carrier bags, among others.

The growing production of genetically modified corn and the growing usage of bio-PLA in 3D printing are likely to act as opportunities in the future.

Asia-Pacific dominated the market across the globe, with the largest consumption from countries such as China and Japan.

Scope of the Report

Polylactic acid (PLA) is a biodegradable and bio-based aliphatic polyester that can be manufactured from renewable materials such as corn, sugarcane, cassava, and sugar beet pulp. This gives PLA manufacturing a lower carbon footprint in comparison to fossil-based plastics. The bio-polylactic acid market is segmented by raw material, form, end-user industry, and geography. On the basis of raw material, the market is segmented into corn, cassava, sugarcane and sugar beet, and other raw materials. By form, the market is segmented into fiber, films and sheets, coatings, and other forms. Based on end-user industry, the market is segmented into packaging, automotive, medical, electronics, agriculture, textile, and other end-user industries. By geography, the market is segmented into Asia-Pacific, North America, Europe, South America, and Middle-East and Africa. The report also covers the market sizes and forecasts for the bio-polylactic acid (PLA) market in 18 countries across the major regions. For each segment, the market sizing and forecasts have been done on the basis of revenue (USD million).

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Key Market Trends

The Packaging Segmented is Expected to Dominate the Market

The packaging industry is one of the largest consumers of bio-PLA. Packaging accounted for a little over 68% of the bio-PLA market in 2019 in terms of revenue. Moreover, concerns about hygiene and food safety in the context of the pandemic have become a higher priority globally. As the packaging industry is the key player, the industries that help provide essential needs, such as getting food and required supplies safely to consumers, have been increasingly affected by the COVID-19.

Food packaging being the packaging industry’s largest area of activity, the USD 900 billion per year worldwide industry has been impacted enormously. The demand for packaging in segments such as groceries, home entertainment products, and household supplies is likely to increase during the pandemic period. At the same time, several segments such as packaging for the food and pharmaceutical industries continue to see vigorous demand. The shutting down of restaurants due to the pandemic has drastically shifted the packaging demand in the food area as consumers will continue to move to grocery purchases. The demand has increased across various healthcare packaging segments. In addition, the demand is expected to increase for dietary supplements, such as vitamins, and essential supplies, such as allergy medication. Moreover, the concerns regarding the environment and climate change are driving the countries worldwide to choose biodegradable packaging materials.

Bio-PLA is majorly used in fruit and vegetable packaging in supermarkets and for bread bags and bakery boxes, bottles, envelopes and display carton windows, and shopping or carrier bags, among others. The demand for bio-PLA in the packaging industry is increasing at a rapid pace in the European and North American regions. The increasing intervention of the Food and Drug Administration (FDA) and related organizations, in terms of food safety, is promoting the usage of bio-degradable and food-grade plastics for beverage and snack consumption. The restaurant chains and food processing industries are increasingly adopting biodegradable materials for food packaging. Consumer awareness is also rising rapidly in terms of food safety, as some plastics are proven carcinogens. The packaging industry in the developing regions, such as Asia-Pacific, South America, and the Middle East, is expected to grow over the forecast period due to the improving food packaging standards of various food and safety organizations in these regions.

Furthermore, the post-lockdown numbers indicate a systemic shift in consumer purchasing preferences from offline to online. Customers are increasingly getting used to the comforts of online shopping globally, which is expected to increase the demand in the PLA market during the forecast period. Moreover, over the forthcoming years, the packaging sector is expected to benefit from the growing population, rising urbanization, and the further development of retail infrastructure in the emerging and developing nations of Asia, Africa, the Middle East, and Eastern Europe.

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